Platform
TikTok’s “Deals For You” Flops While Prime Day Thrives: Here’s Why
TikTok’s recent attempt to compete with Amazon’s Prime Day reveals a stark contrast in consumer behavior between the two platforms.
According to data from ModernRetail, TikTok’s “Deals For You” event, which ran from July 9 to July 17, saw a 6% decline in gross merchandise growth in the U.S.
This performance is in sharp contrast to Amazon’s Prime Day, during which non-Amazon retailers experienced a 3% year-over-year increase in gross merchandise volume growth.
The disparity highlights TikTok’s challenges in establishing itself as a major player in the e-commerce space, particularly in Western markets.
While TikTok’s parent company, ByteDance, has seen significant success with Douyin, the Chinese version of the app, Western audiences appear more resistant to social media commerce.
TikTok reports that 15 million sellers now use the app across various markets, and in the UK, it has become the second-largest online beauty and wellness retailer.
However, these achievements pale compared to Douyin’s performance in China, where the app generated over $300 billion in sales in 2023, compared to TikTok’s $3.8 billion globally in the same period.
Bloomberg reports that the company wants to relaunch its in-app shopping tools in Spain and Ireland. This move comes after a previous attempt to expand e-commerce operations in Europe, which faced setbacks in 2022 due to internal conflicts and a lack of consumer interest.
While TikTok’s e-commerce growth in Asian markets like Singapore, Malaysia, and Indonesia shows promise, Western consumers prefer dedicated shopping portals like Amazon for online purchases.
Moreover, concerns over TikTok’s data practices and potential links to the Chinese government may play a role, particularly in the U.S. market.